Third of global economy will be in recession this year, IMF boss warns

Although some countries will dodge recession, “it would feel like recession for hundreds of millions of people,” in those places also, Kristalina Georgieva said.

The IMF managing director said 2023 was set to be “tougher” than the year just gone as the three major economic engines – the US, EU and China – are marking economic slowdowns.

“We expect one third of the world economy to be in recession,” Georgieva told the CBS news programme Face the Nation.

The global economy is currency battling the fallout from the war in Ukraine, surging prices, higher interest rates and a Covid wave in China.

“For the first time in 40 years, China’s growth in 2022 is likely to be at or below global growth,” Georgieva said.

China is experiencing a surge in Covid-19 infections and has scrapped its zero-Covid policy, suddenly lifting many social restrictions. 

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